Dell Goes Dutch

Dell Computer Corp. signed an expanded computer system components deal with
Royal Philips Electronics that could be worth up to $5 billion for the Dutch
company over the life of the five-year agreement.

The arrangement calls for Philips to provide conventional
and flat-panel monitors, storage devices, connectivity solutions, and other
components to Dell for use in the computer systems that
it assembles.

Dell will become a preferred supplier to Philips of server and data-storage
products, workstations and PCs while also marketing a range of Philips-brand
computer peripherals.

The companies said they also would collaborate on technology planning,
marketing and optical-storage standards. The $5 billion figure is based upon
25 percent year-over-year growth.

“Expanding the relationship with Philips enables us to meet the technology
requirements of customers across the globe,” said Glenn Neland, Dell’s vice
president for worldwide procurement.

Philips is Europe’s largest maker of consumer electronics and third in
semiconductors. The company has been signing major league deals recently,
including pacts with AOL/Time Warner and Nike after reporting its worst loss in 10 years.

Just last month Round Rock, Texas-based Dell
signed a partner deal
in which Cray will market
high-performance cluster solutions and services worldwide using Dell’s
PowerEdge servers.

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